Energy and Petroleum Cabinet Secretary Opiyo Wandayi has assured Kenyans that the country has adequate petroleum stocks and continues to receive fuel cargoes on schedule despite growing disruptions in the global oil market.
In a statement on Tuesday, October 13, Wandayi attributed the rising pressure on global fuel prices to the continuing conflict in the Middle East, which has affected oil tankers, pipelines and loading facilities across the region.
He said the disruptions had reduced the volume of petroleum products reaching the market while increasing shipping and insurance costs, tightening global supplies and pushing prices upward.
“The global market may remain under strain for some time, and no government anywhere can control the world prices of oil,” Wandayi said.
Petrol and diesel costs rise
According to the Cabinet Secretary, the cost of imported petroleum products rose significantly between August and September, reflecting the growing pressure on international oil markets.
The cost of Super Petrol, also known as Premium Motor Spirit (PMS), on a Cost, Insurance and Freight (CIF) Mombasa basis increased from approximately $1,199 per tonne in August to $1,385 in September.
Diesel, or Automotive Gas Oil (AGO), rose from about $1,200 to $1,313 per tonne over the same period.
Wandayi said the upward trend had continued since landed costs reached a low in June, with petrol recording its highest level of the year.
He explained that Kenya’s monthly M-1 petroleum pricing mechanism uses benchmarks from the preceding month, meaning the latest increases in import costs would feed into subsequent pump-price reviews.
Government-to-Government deal cushions Kenya
The Cabinet Secretary credited Kenya’s Government-to-Government (G-to-G) petroleum procurement arrangement with helping the country maintain a steady supply despite disruptions affecting traditional oil-loading routes.
He said international oil companies supplying Kenya under the arrangement had shifted cargo loading to alternative ports and regions whenever their usual Gulf loading points came under pressure.
According to Wandayi, the arrangement also shields Kenya from sharp increases in freight charges and supplier premiums because the country continues to operate under fixed rates agreed upon before the latest market disruptions.
He said the fixed freight and premium terms had helped cushion Kenyan consumers against additional costs associated with the crisis.
Wandayi maintained that the government would continue engaging suppliers to ensure petroleum cargoes are loaded and delivered on schedule while defending the existing terms of the procurement arrangement.
Government seeks extension of 8 per cent VAT
The government is also pursuing tax measures aimed at cushioning consumers against rising international oil prices.
Wandayi said the National Assembly was considering a Bill seeking to extend the application of the 8 per cent Value Added Tax (VAT) on petroleum products for an additional 90 days from October 15, 2026.
He said the government would continue implementing measures to mitigate the effects of global oil-market shocks while keeping the public informed about developments in the international supply chain.
The Cabinet Secretary maintained that Kenya’s petroleum supply remained uninterrupted, with fuel available at filling stations across all counties.
He said the government would continue monitoring the situation as geopolitical tensions and disruptions to international shipping routes threaten to sustain upward pressure on fuel prices.
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